Analysts had expected the company to report earnings excluding items of 53 centsa share on $6.39billion in revenue, according to a consensus estimate from Thomson Reuters.

"Based on the effectiveness of strategies we have in place, we are confident that momentum will continue going forward, which is reflected in the actions we are announcing today to increase returns to our shareholders through an increased dividend and share repurchases," said Terry J. Lundgren, Macy's chairman, president and CEO, in a statement.

The retail giant also raised its quarterly dividend to 25 cents a share, from 20 cents.